OKI, Intel and Huashu Jointly Develop Next Generation Hybrid STB

High Definition STB Includes the Intel(R) CE 2110 Media Processor
TOKYO--(Business Wire)--
Oki Electric Industry Co., Ltd. (TOKYO:6703), Intel K.K. and
Huashu Digital TV Co., Ltd., a leading cable TV company in China, have
announced that the three companies have jointly developed a Next
Generation Hybrid Set Top Box (STB) to serve the digital home market
segment in China.

The digital STB platform design reflects Huashu's experience as a
developer of value-added services in China and is based on OKI's
leading video processing technologies and the Intel CE 2110 media
processor. The hybrid platform is designed to let TV viewers enjoy
high-definition television broadcasts, video-on-demand and future
valued-added services such as 3D graphics.

"The convergence of broadcasting and communication will create a
new digital home market," said Keizo Ikeda, President of Media-network
Appliance Company at OKI. "OKI believes the Next Generation Hybrid STB
will enable subscribers to leverage value-added services and help
telecom carriers improve their profitability. From an early stage, OKI
has provided IPTV STBs to a major telecom carrier in Japan. With this
track record and with our advanced technologies, OKI's ultimate aim is
to contribute to China's digital development."

The number of digital TV subscribers in China reached 23.64
million households in Nov. 2007, representing 24.3 percent of the
China's total households subscribed to CATV, and an 81.3 percent
increase from the previous year. (Source: Industrial Development and
Digital Broadcast Research Center)

With the coming 2008 Summer Olympics in Beijing and Shanghai World
Expo in 2010, the number of high-definition broadcast channels is
expected to increase. The digitalization of cable TVs and the spread
of IPTV are expected to drive the convergence of broadcast and
telecommunications-based video services with resulting growth in the
STB market segment.

To accelerate the adoption of digital TV technology, telecom
carriers in China have provided low-end set top boxes to their
subscribers at no cost. These devices have limited the ability of
subscribers to access value-added services, and free STB distribution
has made it difficult for carriers to increase their profitability.

"With the coming digital home era, Huashu has been looking for a
platform to enable carriers to promote home digitalization, enhance
network intelligence, meet the needs of multiple home applications,"
said Zhou Hong, Vice General Manger at Huashu Digital TV. "The Next
Generation Hybrid STB, jointly developed by OKI, Intel and Huashu, is
a perfect solution for such a platform, and with it, we aim to provide
new value-added services to our subscribers while improving our
average revenue per user."

The Next Generation Hybrid STB, which can be used for both digital
video broadcasting (DVB) and IPTV, supports HDTV decoders including
MPEG-2, MPEG-4, and H.264. The platform uses the high-performance
Intel CE 2110 media processor which includes a 2D/3D graphic
accelerator and supports applications including a Flash player, Java
Virtual Machine (JVM) and a browser.

The Next Generation Hybrid STB will be shown at OKI's booth at the
16th China Content and Broadcasting Network (CCBN2008)
(http://www.ccbn.tv/) to be held in Beijing from March 21 to 23.

About Oki Electric Industry Co., Ltd.

Founded in 1881, Oki Electric Industry Co., Ltd. is Japan's first
telecommunications manufacturer, with its headquarters in Tokyo,
Japan. OKI provides top-quality products, technologies and solutions
to its customers through its info-telecom system business,
semiconductor business and printer business. All three businesses
function as a collective force to create exciting new products and
technologies that satisfy a spectrum of customer needs in various
markets. Visit OKI's global web site at www.oki.com/.

About Intel

Intel, the world leader in silicon innovation, develops
technologies, products and initiatives to continually advance how
people work and live. Additional information about Intel is available
at www.intel.com/pressroom and blogs.intel.com.

About Huashu Digital TV Co., Ltd.

Huashu Digital TV is a leading cable TV provider, headquartered in
Hangzhou, Zhejiang, China, actively promoting cable TV digitalization.
It focuses on the country's development through digitalization and has
provided two-way digital services, value-added services and digital
information services within the country. It contributes as a pioneer
in developing the digital TV industry in China by increasing the
number of highly value-added service subscribers.

Notes:

-- Intel is a registered trademark of Intel Corporation in the
United States and other countries.

-- Names of companies and products are trademarks or registered
trademarks of the respective companies and organizations.

Oki Electric Industry Co., Ltd.
For Europe and Americas:
Naomi Takeuchi, +1-408-737-6279
Public Relations Division
press@oki.com
For Asia and Other Areas:
Akiko Horiguchi, +81-3-3580-8950
Public Relations Division
press@oki.com

Copyright Business Wire 2008